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Under President Biden’s leadership, America is on the move again. We created more than 6.5 million jobs in 2021, the most our country has ever recorded in a single year. We are also on track to reduce the deficit by more than $1.3 trillion this year—the largest one-year reduction in the deficit in U.S. history. This progress is a direct result of the President’s strategy to grow our economy from the bottom up and the middle out—a strategy that was built on smart, fiscally prudent investments that helped jumpstart our economy.
A core pillar of President Biden’s economic agenda is creating good-paying union jobs and reducing energy costs by tackling the climate crisis. President Biden’s Bipartisan Infrastructure Law (BIL) has already jumpstarted hundreds of projects across the country, including those that will increase resilience to climate change and extreme weather, strengthen U.S. energy security, and deliver environmental justice. And as the President said during his State of the Union address, the Administration is committed to working with Congress on legislation that cuts cost for families—including reducing energy costs by combatting climate change and growing the clean energy economy—while also expanding the productive capacity of the economy and reducing the deficit.
The Budget presents President Biden’s vision for the strategic and sustained investments needed through annual appropriations to continue to decrease energy prices and grow the economy over the long term. The President’s Budget invests a total of $44.9 billion in discretionary budget authority to tackle the climate crisis, $16.7 billion more than FY 2021 or an increase of nearly 60 percent. These and other long-term investments include:
The Budget would continue to drive down energy prices, enhance U.S. competitiveness, and put America on a path to reduce greenhouse gas emissions 50-52 percent by 2030—all while ensuring that at least 40 percent of the overall benefits from tackling the climate crisis reach disadvantaged communities. Importantly, the Budget will also make these critical investments while cutting the deficit by more than $1 trillion over the next decade and ensuring that no one earning less than $400,000 a year will pay an additional penny in new taxes.
BUILDS CLEAN ENERGY PROJECTS AND STRENGTHENS DOMESTIC MANUFACTURING
Strengthens Domestic Manufacturing, Creates More Resilient Global Supply Chains, and Supports Deployment of Clean Energy Infrastructure. Today, much of the world’s clean energy technology is manufactured in China. China produces 80 percent of the world’s battery cells and solar energy inputs and controls global production for many of the refined minerals and materials that are essential for clean energy technologies. The Budget invests over $15 billion in discretionary funding for clean energy innovation and infrastructure at home—$12 billion for clean energy innovation and $3 billion for deployment—and invests in quickly scaling-up domestic manufacturing of key climate and clean energy technologies; accelerating the deployment of carbon-free electricity, zero emission vehicles, and low-carbon industrial solutions; and creating good-paying American jobs. Investments include:
Lowers Household Energy Costs. President Biden is committed to decreasing energy costs for households, including in rural, Tribal, and disadvantaged communities. The Budget calls for historic investments to make homes more energy efficient and resilient to climate change. Investments include:
Creates Clean Energy Jobs in Rural America. President Biden is committed to creating good-paying, union jobs in rural communities and ensuring that the wealth created by those jobs stays in rural areas. Investments include:
Increases Demand for American-Made, Zero-Emission Vehicles through Federal Procurement. The Budget invests $745 million for zero emission fleet vehicles and support for charging or fueling infrastructure in the individual budgets of 19 Federal agencies to provide an immediate, clear, and stable source of demand to help accelerate American industrial capacity to produce clean vehicles and components. This funding includes $301 million for dedicated funds at the General Services Administration for other agencies and for United States Postal Service charging infrastructure.
Advances the Deployment of Electric Vehicle Charging Infrastructure. The Budget includes $1 billion in formula grants and $400 million in competitive grants to build out a network of EV charging stations across key Alternative Fuel Corridors, particularly the Interstate Highway System, along with community chargers located in rural and underserved communities. These resources will be deployed in partnership with the newly formed Joint Office of Energy and Transportation, a collaborative effort of the Departments of Energy and Transportation.
DELIVERS ENVIRONMENTAL JUSTICE FOR COMMUNITIES LEFT BEHIND
Advances Equity and Environmental Justice. The Budget provides historic support for overburdened and underserved communities and advances the President’s Justice40 commitment that at least 40 percent of the overall benefits of Federal investments in climate and clean energy reach disadvantaged communities. Investments include:
Upgrades drinking water and wastewater infrastructure nationwide. To accelerate the President’s goal of delivering clean water to all Americans and the historic funds in the BIL to do so, the Budget includes investments to upgrade drinking water and wastewater infrastructure nationwide, with a focus on underserved communities that have historically been overlooked. Investments include:
Protects Communities from Hazardous Waste and Environmental Damage. Preventing and cleaning up environmental damage that harms communities and poses a risk to their health and safety is a top priority for the Biden-Harris Administration. These efforts will make communities safer and boost local economies. Investments include:
Reduces Lead and Other Home Health Hazards for Vulnerable Families. Black, Latino, and Native communities are more likely to be burdened by lead pollution. The Budget provides $400 million, an increase of $40 million above the FY 2021, for States, local governments, and nonprofits to reduce lead-based paint and other health hazards in the homes of low-income families with young children. The Budget also includes $25 million to address lead-based paint and $60 million to prevent and mitigate other housing-related hazards, such as fire safety and mold, in public housing. These investments will help save lives and reduce the unique dangers that lead poses to children across America.
Tackles Per- and Polyfluoroalkyl Substances (PFAS) Pollution. PFAS are a set of man-made chemicals that threaten the health and safety of communities across the Nation, disproportionately impacting disadvantaged communities. As part of the President’s commitment to tackling PFAS pollution, the Budget provides approximately $126 million, $57 million over FY 2021, for EPA to increase the understanding of PFAS and its human health and ecological effects, restrict use to prevent PFAS from entering the air, land, and water, and remediate the PFAS that has been released into the environment.
Provides robust support for Tribal Nations. The Budget includes $671 million for DOI to support Tribal climate programs. This includes $61 million for the Tribal Climate Resilience program. The Budget also includes $80 million to reestablish a modified Indian Land Consolidation Program focusing support on Tribes’ plans for and adaptation to climate change. Additionally, the Budget further proposes to provide mandatory funding to the Bureau of Reclamation for operation and maintenance of previously enacted Indian Water Rights Settlements, and the Administration is interested in working with the Congress on an approach to provide a mandatory funding source for future settlements. Additional information on Tribal historic investments for Tribal Nations is here.
SUPPORTS ECONOMIC REVITALIZATION IN ENERGY COMMUNITIES
The Budget includes over $9 billion – an increase of over $1 billion above FY 2021 – in discretionary funding for programs and initiatives across the Federal Government that support economic revitalization and job creation in hard-hit coal, oil and gas, and power plant communities. These priority programs and initiatives align with the efforts of the Administration’s Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization (IWG), which is administered by DOE, and address the needs of energy communities based on stakeholder feedback from over 100 workshops and meetings convened throughout FY 2021 and FY 2022. Investments include:
PROTECTS COMMUNITIES FROM CLIMATE CHANGE IMPACTS
Strengthens Climate Resilience and Reduces the Risks of Climate Change. Millions of Americans feel the effects of the climate crisis each year as extreme weather and climate change impact every region and economic sector. Indeed, more than 40 percent of Americans live in counties hit by climate disasters in 2021 and more than 80 percent experienced a heat wave. The Budget provides more than $18 billion for climate resilience and adaptation programs across the Federal Government. These critical investments will reduce the risk of damages from floods, storms, and coastal erosion; restore the Nation’s aquatic ecosystems; and help protect the most vulnerable communities from the impacts of climate change. Investments include:
Bolsters Nation’s Frontline Defenses against Catastrophic Wildfires. Protecting communities, ecosystems, and infrastructure from wildfires requires a resilient and reliable Federal workforce. President Biden is committed to supporting the firefighting workforce, and has promised that no firefighter will make less than $15 an hour. The Budget includes nearly $3.9 billion for wildland fire management at USDA, DOI, and EPA, an increase of $778 million above FY 2021. The Budget also includes an additional $2.55 billion authorized in the suppression cap adjustment to protect communities, ecosystems, and infrastructure from wildfires. Investments include:
Decreases the Health Impacts of Climate Change. Protecting Americans’ health and well-being has always been at the heart of fighting climate change. The impacts of climate change are leading to increased exposure to threats, such as unhealthy smoke and debilitating heat. The Budget increases investments to identify and mitigate the health impacts of climate change. Investments include:
Invests in Conservation and Carbon Sequestration. The Budget invests in the Biden-Harris Administration’s America the Beautiful Initiative, a multi-agency, multi-jurisdictional ecosystem management effort that will strengthen conservation partnerships between communities and Federal partners such as DOI, USDA, and NOAA. The President’s first-of-its-kind goal of conserving and restoring 30 percent of America’s lands and waters by 2030, and his climate-smart agriculture and forestry initiative will incentivize America’s farmers, ranchers, and forest landowners to sequester carbon in soils and vegetation, and support States and Tribal Nations. Investments include:
DEVELOPS NEXT GENERATION TOOLS TO OUT-INNOVATE CHINA
The Budget calls for a historic and needed investment in climate and clean energy innovations to create new jobs, technology, and tools that empower American companies, workers, and communities to compete effectively and lead the world in global markets for clean energy technology and climate solutions. This includes $12 billion for clean energy innovation an increase of 32 percent over the FY 2021. Investments include:
Improves Climate Science, Environmental Data, and Forecasting. The Budget significantly improves the Nation’s ability to predict extreme weather and climate events so that American businesses and communities can have accurate and accessible information to allow them to better prepare for these kinds of events. The Budget proposes over $5 billion for a broad portfolio of climate science research, along with billions in related investments across multiple agencies, including the DOI, NASA, the Department of Commerce, the NSF and others, to improve understanding of our changing climate and inform adaptation and resilience measures. Investments include:
These investments are examples of the Biden-Harris Administration once again prioritizing investment in R&D at historic levels in the President’s FY 2023 Budget. In total, the Budget provides $204.9 billion for Federal R&D, a 28 percent increase over the FY 2021. Additional information is available in the R&D chapter of the Analytical Perspectives Volume.
RESTORES AMERICA’S GLOBAL LEADERSHIP
The Budget includes over $11 billion to advance the President’s historic pledge to quadruple international climate finance. When enacted, this funding will meet the President’s pledge a year early. U.S. international climate assistance and financing would: accelerate the global energy move towards net-zero emissions by 2050; increase energy independence and security; help developing countries build resilience to the growing impacts of climate change, including through the President’s Emergency Plan for Adaptation and Resilience and other programs; and support the implementation of the President’s Plan to Conserve Global Forests: Critical Carbon Sinks.
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The White House
1600 Pennsylvania Ave NW
Washington, DC 20500
President Biden’s FY 2023 Budget Reduces Energy Costs, Combats the Climate Crisis, and Advances Environmental Justice – OMB – The White House
